01 Apr 2019 #Stellar
Coinbase, the largest US crypto exchange, has announced an education initiative with Stellar. Stellar is a protocol for crypto to fiat transfer. It also allows for cross-border transactions. These cross-border transactions can happen between any two pairs of currencies.
Coinbase has a program to offer up to $50 dollars (in Lumens) to anyone who watches 5 educational videos about Stellar. To get the full $50 you would also need to invite 4 friends who also watch the videos.
Coinbase is eager to offer its clients anything extra to remain competitive in a market that is slowly maturing. Stellar believes that through initiatives like these it can help itself and the community as a whole.
Education is a cornerstone of cryptocurrency acceptance and they believe there is nothing better than to incentivize it with cold, hard cash. Stellar also believes that by giving out much of the currency, it can stimulate millions of people to use it. Those same people will also feel invested in the growing use of both the Stellar protocol and the Lumens themselves.
In a blog post, the Stellar Foundation explained the rationale better. It stated that for a "platform like Stellar, which aspire to be a worldwide payment platform", having millions of new users on its network is a great prospect. They also say that their work with Coinbase Earn will be an ongoing project, with updates added later as needed.
Coinbase has used this opportunity to increase its customer satisfaction profile. While it has always been a user-friendly exchange, it was held back by only offering a limited number of coins. These were Bitcoin, Litecoin and Ethereum. Many users complained and found that to be too restrictive.
The company has been adding coins and features to keep up in the competitive world of cryptocurrency exchanges. They feel that Coinbase Earn will increase customer satisfaction. However, they also believe that it is an easy starting point for beginners to enter the crypto world and learn. The free money in the form of Lumens is to pull people in that would otherwise be hesitant to own a crypto asset.
This news comes soon after stories of the Stellar Foundation keeping mum about bugs in early code. In April 2017, an attacker was able to generate 2.25 million Lumens successfully. This bug was quietly patched out the following month, in version 0.6.2 of the software. No blog posts were made to discuss the issue. No overt announcements to media either.
In a bid to deal with the rampant inflation, the Stellar Foundation ate the loss itself by burning 2.25 billion tokens form their supply to balance the supply and return it to true levels.
Stellar has defended their actions by saying that at the time, the community was much smaller than it is now. It was made up of developers, who were best reached through patch notes. They do confirm that they burned the tokens themselves and ate the loss so that they could shore up the Lumen. They also stated that there have been no significant bugs since and that due to becoming bigger, they would immediately notify the public about it.
Get cryptocurrency price predictions, forecasts with analysis and news right to your inbox.
© 2015-2021 Crypto-Rating.com
The usage of this website constitutes acceptance of the following legal information. Any contracts of financial instruments offered to conclude bear high risks and may result in the full loss of the deposited funds. Prior to making transactions one should get acquainted with the risks to which they relate. All the information featured on the website, including information about the cryptocurrencies and bitcoin is intended solely for informational purposes, is not a means of advertising them, and doesn't imply direct instructions for investing. Crypto Rating shall not be liable for any loss, including unlimited loss of funds, which may arise directly or indirectly from the usage of this information. The editorial staff of the website does not bear any responsibility whatsoever for the content of the comments or reviews made by the site users about cryptocurrencies. The entire responsibility for the contents rests with the authors. Reprint of the materials is available only with the permission of the editorial staff.